Tiomin Resources Inc -
Cerro Colorado drilling results
Tiomin Resources Inc
TIO
Shares issued 35466397
1997-09-02 close $2.2
Wednesday Sep 3 1997
Mr Mathew Edler reports
The company has received the following drill results which confirm that a significant leachable copper resource has been outlined overlying the massive Cerro Colorado porphyry sulphide copper deposit. This 3000m drilling program, which is scheduled to be completed by mid-September, has the objective of converting mineral resources into the proven/probable reserve category and to identify additional ore reserves. The preliminary figures indicate in excess of 60 million tonnes of ore grading 0.72% total Cu have been outlined, sufficient to support over 13 years of SX-EW copper production. From To Inter- Leach- Total section able Cu Cu CC97-273 81.0m 105.0m 24.0m 0.30% 0.46% CC97-274 105.0m 120.0m 15.0m 0.39% 0.63% CC97-275 63.0m 123.0m 60.0m 0.76% 0.95% CC97-276 54.0m 66.0m 12.0m 1.37% 1.75% 111.0m 171.5m 60.5m 1.17% 1.44% (Note: drill hole CC97-276 lost in ore (at) 171.5m)
CC97-277 90.0m 120.0m 30.0m 0.85% 0.97% CC97-278 154.5m 192.0m
37.5m 0.60% 0.78% CC97-279 126.0m 138.0m 12.0m 0.36% 0.43%
171.0m 225.0m 54.0m 0.59% 0.78% CC97-280 9.0m 39.0m 30.0m
0.47% 0.72% CC97-282 31.2m 69.0m 37.8m 0.84% 0.96% CC97-281
assays pending CC97-283 assays pending CC97-284 drilling in progress
CC97-285 drilling in progress
This data suggests that additional leachable tonnage is likely to be identified on the property with further exploration drilling. The final ore reserve block modelling of the currently identified leachable ore reserves is scheduled to be completed in October. To date, approximately 78,000 metres of drilling have been completed on this orebody. Tiomin, through its wholly owned Panamanian subsidiary, PanaCobre, SA, is completing a feasibility study at the Cerro Colorado porphyry copper deposit in Panama, under the supervision of Kvaerner Metals - Davy nonferrous division. Cerro Colorado is generally recognized as the world's 12th largest porphyry copper deposit with an identified resource totalling 24 billion pounds of copper.
This feasibility study, expected to be completed in October, will provide the engineering details supporting the development of a 40-55 million pounds per year SX-EW mining operation to process the near surface chalcocite leachable copper ore reserves as a first stage. The planned second phase of development, designed to process the underlying sulphide orebody, consists of a conventional milling operation rated at about 100,000 tonnes per day capacity, capable of producing in excess of 500 million pounds of copper annually.
In addition to its substantial copper assets in Panama, Tiomin is currently completing a feasibility level study on several large titanium deposits in Kenya, as well as exploring for nickel in a joint venture with SOQUEM in Quebec.
(c) Copyright 1997 Canjex Publishing Ltd.
canada-stockwatch.com
Back of the envelope...I believe the company was claiming a potential cost of $.40-.60 lb., let's call it .50. At 500 million lbs. per year at a profit of .50 per lb. that should translate into earnings of $250 mil per year for several decades. I will let the real accountants give me a better sense of the projected earnings. I am no expert on how to value these things but this looks like a great asset play.
At a market cap of $70 million I believe the company is undervalued with a $12 billion asset in the ground, after costs, assuming copper prices don't completely crash. Obviously I am missing something. Perhaps someone can tell me what it is. |
